May 24, 2016

Israel Opportunity Investor CEO Interview with Incredimail’s (MAIL) Yaron Adler

NEW! This interview, in its entirety, was published for the subscribers of Israel Opportunity Investor, our new subscription product providing investors with the best ideas in Israeli stocks trading in the U.S. To subscribe, or receive a sample issue and our recently published white paper, go to


Tell us about your company.

Yaron Adler, Founder and CEO: Incredimail (Nasdaq: MAIL) is an Israeli company, founded in late 1999. Incredimail is our flagship product for email. The product allows users to customize and personalize traditional email communication, in a way that brings life and excitement to applications they regularly use. We enable you to send emails with 3D effects, funny animations and customized backgrounds. We aren’t re-inventing the wheel. We take existing applications, like email, and make them fun to use.

Giving away free content is not a great business. What’s the business model?

YA: The business model is based on what I like to call “the large numbers game.” We are working hard on two fronts: we are working to bring millions of new users to our products and working on how to best monetize them. We started by using viral marketing to promote our content. Every email sent from Incredimail has a link included on the bottom to bring the recipient of that email to our website. This strategy has worked very well. To date we have 80 million users of which 11 million are active (defined as at least 1 usage event per quarter). Over 300 million emails are sent per month with Incredimail. We get 300,000 new visits to our website daily just from the viral links we include in our emails.

How are your revenues?

YA: For the first nine months of 2007 revenues increased 94% to $13.3 million from $6.9 million for the first nine months of 2006. Net income for the nine-month period was $1.8 million versus $1.6 million for the same period in ’06. Again, we’re focused on two things: accelerating growth to get more users plus trying to better monetize our users. To do this, we need increased R&D to make new products for our users to interact with and we need to improve our revenue sources.

You’ve said search revenues are going to play a bigger role in your revenue model. Can you explain how?

YA: You can grow search revenues in two ways: more searches + more profitable searches. We’re just in the early stages of doing this. We’re directing searches to our search engine (powered by Google) by suggesting to our users to replace their homepage with MyStart page with value added Incredimail content. A soon-to-be-released browser toolbar increases searches away from Incredimail. We can find a way to promote suggested searches and ultimately, as our search traffic increases, negotiate a better deal with Google.

We’ve just started optimizing our search revenues. Our growth continues to accelerate, driven by increased revenues from all streams: products and subscriptions on the one hand, which used to be our big revenue driver, and advertising and search on the other hand, which now accounts for almost 46% of our revenue.

How are your content deals with movie studios coming along?


NEW! To read this interview in its entirety, subscribe to Israel Opportunity Investor. In addition to reading what else Incredimail has in store, you’ll receive monthly stock picks, learn what hedge funds/asset managers are investing into in Israel, read CEO interviews, and hear what leading edge thought-leaders are saying about the next big market opportunities in Israel. To subscribe, go to and click on ‘Subscribe’

About Zack Miller

Zack Miller is the Managing Director of Israel Newsletter, Lighthouse Capital and the author of acclaimed, Tradestream your Way to Profits: Building a Killer Portfolio in the Age of Social Media (Wiley, 2010).


  1. daniel hulik says:

    I have had on going communication with the support staff at incredimail to no avail. Its been over two months and many,many emails to the support staff to solve my problem. I love the incredimail format,but have several unsolved problems. Can you interveen for me. I wouls appreciate your help in solving this over due correction.

    thank you daniel

  2. frank says:

    Incredimail loads MyStart on your firefox without you asking for it and when you try to delete Incredimail to get rid of MyStart you are stuck with this MALWARE on YOUR COMPUTER and after repeated attempts to contact incrdimail they will not answer you back to help you get rid of this Malware, MyStart, Incredimail Hyjacks your computer this way…Do NOT download this Incredimail unless you want MyStart with it…Just do a search on google and you will find lots of people pissed off with what Incredimail is doing to there computers with this MyStart…PIA

    PS Ditto if you can intervine for me also this would be great and there WILL be a place for u in computer Heaven i’m sure!

  3. frank says:

    Incredimail SUCKS….JUST do a google and you will find lots of people pissed off because of their malware MyStart that they feel free to load your computer with when u get Incredimail and you can’t get rid of it!

  4. Dondeena Giddings says:

    I have Incredimail Premium. I cannot open my Incredimail account and don’t know how to fix it. Was using in the morning fine. Logged out. Then tried to get back in later in the afternoon and when I double click on my Incredimail icon nothing happens. You cannot send me an answer on my e-mail because I cannot acces it. I am very frustrated.

    The only way to contact me is my phone or facebook.


  1. [...] whole thing sounds weird, especially the timing of the recent events. We interviewed Yaron a few months ago, and actually had a conference call with him 2 weeks ago, and he gave no [...]

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